Economist's Insights

WSJ Describes a Possible Shift from Philly Fed President Harker

Jul 11, 2017

About the time Fed Governor Brainard took the stage, the WSJ published an article detailing comments from an interview with Philadelphia Fed President Patrick Harker. In the interview, Harker supported starting to slow reinvestments later this year but allowing a period for assessing the market response before determining whether or not to raise rates for a third time this year. Harker noted it’s possible that recent weakness in inflation “could be transitory” but said if it persists “it would give me a little pause in terms of the policy path. …I’m in a wait-and-see mode now…let’s just be pragmatic about it.” The article contrasted Harker’s Tuesday tone with his stance from late June to show a potential change in his outlook, extracting a line from the June speech – “ I still see another rate hike as appropriate for 2017, having already implemented two this year.”